What is an expat mortgage?
Let’s talk ‘hypotheek’. An ‘Expat hypotheek’ is a Dutch mortgage for expats. Buying a house in the Netherlands has many advantages over renting—good call. Buying property often goes hand in hand with getting a Dutch mortgage; like any other, it’s a loan taken out to buy a property. However, for an expat, additional rules apply. An expat mortgage is an option if you regularly stay in the Netherlands (Pied à Terre), if you are moving (back) to the Netherlands in the short term or if you want to rent out a purchased property (let to buy).
To put it plainly: for expats, there are fewer providers and more conditions to meet. There are simpler things in life, but there are certainly possibilities. Banks were hesitant in the past, but more and more mortgage lenders are willing to loan to internationals—we’re here to help.
Which criteria apply for a Dutch mortgage?
Yes, you have to live in the Netherlands to get a Dutch mortgage. Also, banks want certainty that you will reside in the Netherlands for some time; this requirement varies from 6 months to 5 years. It’s easier for EU-nationals than other foreign buyers to get a mortgage. The latter need to have a non-temporary residence permit. Permanent contracts are good, but getting a mortgage with a temporary contract is still possible . Entrepreneurs are more than welcome too but must show their financials for a number of previous years. Furthermore, the loan limit in relation to the value of the property is critically assessed. This amount is not favorable for expats from outside the EU.
There are also some rules from which expats benefit. If you have been hired for a specific position and your specialty is scarce in the Netherlands, you may be eligible for the 30% ruling. You receive a 30% tax reduction on your gross salary; this simply means there’s more to loan.
As you can see, some expert advice will come in handy. Don’t hesitate to contact us and we’ll guide you through all the rules and regulations.